Ecuador: The government of Ecuador has announced a sharp increase in tariffs on imports from Colombia, raising the rate from 30 percent to 50 percent effective March 1, in a major escalation of a growing trade and security dispute between the neighbouring Andean nations.
President Daniel Noboa has intensified pressure on his counterpart, Gustavo Petro, demanding stronger action on border security and narcotics trafficking. Noboa has argued that Colombia has not done enough to curb the flow of drugs and organised crime spilling across the roughly 586-kilometre shared border.
Since the COVID-19 pandemic began in 2020, Ecuador has experienced a surge in violence linked to expanding criminal networks. The Noboa administration has increasingly turned to tariffs as leverage, a strategy observers say echoes tactics used by US President Donald Trump in trade disputes.
The latest move follows an initial 30 percent tariff imposed in early February. Officials in Quito have also defended the protectionist measures by pointing to a widening trade deficit with Colombia.
Data from the Observatory of Economic Complexity show that nearly 4 percent of Colombian exports, worth about $2.13 billion, go to Ecuador, including significant volumes of medicines and pesticides. By contrast, only about 2.3 percent of Ecuador’s exports, valued at $863 million, head to Colombia, leaving Ecuador with a trade deficit of roughly $1.03 billion excluding oil.
Tensions have spilt into the energy sector. In retaliation for earlier tariffs, Colombia suspended electricity sales to Ecuador, which relies heavily on imported power during droughts that disrupt hydroelectric production, the source of nearly 70 percent of its electricity. The suspension has raised concerns over potential power shortages and public unrest.
Disputes have also intensified over oil transport fees, after Ecuador dramatically increased charges for Colombian crude shipments through its main pipeline system. Colombia responded by halting oil deliveries through the route, further straining economic ties.
Diplomatic efforts to ease the crisis have so far failed. A recent high-level meeting between foreign policy and security officials ended without a breakthrough.
Ecuador’s Ministry of Production and Foreign Trade accused Colombia of failing to implement concrete and effective measures against cross-border drug trafficking. Meanwhile, Ecuador continues to grapple with soaring crime rates. According to the Organised Crime Observatory, the country recorded a homicide rate averaging roughly one killing per hour last year, underscoring the security pressures driving the dispute.
With tariffs set to rise further, analysts warn that economic fallout and energy disruptions could deepen instability on both sides of the border if negotiations remain stalled.
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